The house hunting is over, and the right house has been found and purchased. Now the buyer is waiting for closing day. This is the day when the house legally becomes the buyer’s. They now have the option to move in. There are several things that are going to take place on that day. The buyer has to be prepared for these. In the meantime, there are some common questions that the buyers may have. Ones concerning the closing of their house transaction.
How Long Does It Take To Close A House Deal In Ontario?
When the final purchase offer on the house is accepted, the closing day is on this legal contract. It can be whatever the purchaser has decided as to what they want the closing day to be.
Buyer and Seller Agreement
If the seller did not agree with the closing date, then they could change the date before accepting the offer. Then it would then go back to the buyer for approval.
Once both parties have agreed to the closing date, then that is the formal date for this. On average the closing date is usually four to six weeks from the date of sale. Although it can be sooner or later if both parties are willing.
The Legal Process
Once all the closing documents have been received by both the sellers and buyer’s lawyers, they go through the legal process. They each determine what is needed to be done on their part. The time it takes to do this will vary according to the lawyer’s schedule.
In most cases, two or three days before the closing date, the lawyers will have completed everything they need to do. Each lawyer will have their clients come into their office to sign all the papers. These are the papers that are necessary to close the deal. However, the house does not become the property of the buyer until the actual closing date.
Will I Get My Keys On Closing Day?
By the date of closing, the buyer’s lawyer should receive possession of the keys. The lawyer’s office will register the property with the seller as the new owner. Once this is done the keys will be handed over to the new owners. Normally this is done between noon and five pm on the closing day. But, there is no set time. This sometimes can be a little frustrating for the new homeowner. Who is anxiously waiting to start moving in all their belongings to their new home.
Legally the lawyer cannot hand over the keys to the new buyer until the sale has been registered. Also, the money owed to the buyers has to be transferred to their lawyer. All of this takes time as there are two law firms involved.
How Long After Closing Does Seller Receive Money in Canada?
Some people are shocked to realize that they most likely are not going to get the money from the proceeds of the sale of their house on closing day. This is because there may be a lot of money transactions that have to take place once the lawyer`s for the buyers and sellers receive the money in their trust accounts.
The Seller’s Lawyer
The seller`s lawyer does not receive the funds until all the registration of the sale has taken place. Then checks have to be disbursed for the discharge of the mortgage, utility bills on the seller`s behalf, and all the legal costs have to be determined and disbursed. Some closings are more complex than others, which can delay the final disbursement of the funds.
In spite of everything that needs to take place regarding the money, most lawyers will try and have the money to the seller by the next day following closing. In some cases, they may have to hold some of the money back to cover costs that they don`t have the actual figure for as yet.
Tips for Buyers on Closing Day
There is a lot that will be going on when closing day arrives.
It is not unusual for most people to plan the closing day as their move-in day. Often this is because the house they are leaving requires them to be out of these premises on the same day. There may be new people moving into that home as well. So it means planning for the moving company carefully.
Most experts suggest planning for the moving company late in the afternoon. This gives enough time for the lawyers to be able to do their thing and hand the keys over. Legally the buyer cannot move into the house they have purchased until the keys have been put into their possession.
Buying and Selling Day Closing Transactions
Most lawyers will suggest when an individual is buying and selling a house that they arrange for the closing for both of these transactions to be on different days. For example, the closing on the new house being purchased should be before the closing day on the house being sold. This can make moving day much easier.
The problem with this is that many of the home buyers need the funds from the closing sale to complete the transaction on the new home buy. All of this can be stressful, but thousands of real estate clients manage the buying and selling process without too many hassles.
Handling Potential Closing Day Problems
Overall the closing day goes without a hitch for the buyer and the seller. On occasion, there can be some things that arise that could affect the move in. Some examples are:
Keys Don’t Work:
- The keys given to the new owner don`t work. This can be frustrating when the moving van is sitting there anxiously waiting to unload. The resolution here is to call a locksmith and then have the lawyers deal with getting reimbursed for the costs.
- There are times when animals may be causing an issue, and the home sellers did not feel it was their responsibility to get rid of them. The recourse the buyer has here is to call in animal control and then let the lawyers determine who is responsible for the costs.
- Home sellers are expected to leave the home in an orderly condition, and most do. On occasion, a large amount of trash is left behind. The home buyer will need to talk to their lawyer as to what to do in this situation.
As long as both the home buyer and home seller have provided all the necessary documents to their respective lawyers well in advance the closing day usually goes well.